FDIC Law, Regulations, Related Acts

8000 - Miscellaneous Statutes and Regulations

FOOD SECURITY ACT OF 1985

An Act to extend and revise agricultural price support and related
programs, to provide for agricultural export, resource conservation,
farm credit, and agricultural research and related programs, to
continue food assistance to low-income persons, to ensure consumers an
abundance of food and fiber at reasonable prices, and for other
purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SHORT TITLE

Section 1. This Act may be cited as the "Food Security Act of
1985".

PROTECTION FOR PURCHASERS OF FARM PRODUCTS

Sec. 1324. (a) Congress finds that--

(1) certain State laws permit a secured lender to enforce liens
against a purchaser of farm products even if the purchaser does not
know that the sale of the products violates the lender's security
interest in the products, lacks any practical method for discovering
the existence of the security interest, and has no reasonable means to
ensure that the seller uses the sales proceeds to repay the lender;

(2) these laws subject the purchaser of farm products to double
payment for the products, once at the time of purchase, and again when
the seller fails to repay the lender;

(3) the exposure of purchasers of farm products to double payment
inhibits free competition in the market for farm products; and

(4) this exposure constitutes a burden on and an obstruction to
interstate commerce in farm products.

(b) The purpose of this section is to remove such burden on and
obstruction to interstate commerce in farm products.

(c) For the purposes of this section--

(1) The term "buyer in the ordinary course of business"
means a person who, in the ordinary course of business, buys farm
products from a person engaged in farming operations who is in the
business of selling farm products.

(2) The term "central filing system" means a system for
filing effective financing statements or notice of such financing
statements on a statewide basis and which has been certified by the
Secretary of the United States Department of Agriculture; the Secretary
shall certify such system if the system complies with the requirements
of this section; specifically under such system--

(A) effective financing statements or notice of such financing
statements are filed with the office of the Secretary of State of a
State;

(B) the Secretary of State records the date and hour of the
filing of such statements;

(C) the Secretary of State compiles all such statements into a
master list--

(i) organized according to farm products;

(ii) arranged within each such product--

(I) in alphabetical order according to the last name of the
individual debtors, or, in the case of debtors doing business other
than as individuals, the first word in the name of such debtors; and

(II) in numerical order according to the social security number
of the individual debtors or, in the case of debtors doing business
other than as individuals, the Internal Revenue Service taxpayer
identification number of such debtors except that the numerical list
containing social security or tax payer identification numbers may be
encrypted for security purposes if the Secretary of the State provides
a method by which an effective search of the encrypted numbers may be
conducted to determine whether the farm product at issue is subject to
1 or more liens; and

(III) geographically by county or parish; and

(IV) by crop year;

(iii) containing the information referred to in paragraph
(4)(D);

(D) the Secretary of State maintains a list of all buyers of farm
products, commission merchants, and selling agents who register with
the Secretary of State, on a form indicating--

(i) the name and address of each buyer, commission merchant and
selling agent;

(ii) the interest of each buyer, commission merchant, and selling
agent in receiving the lists described in subparagraph (E); and

(iii) the farm products in which each buyer, commission merchant,
and selling agent has an interest;

(E) the Secretary of State distributes regularly as prescribed by
the State to each buyer, commission merchant, and selling agent on the
list described in subparagraph (D) a copy in written or printed form of
those portions of the master list described in subparagraph (C) that
cover the farm products in which such buyer, commission merchant, or
selling agent has registered an interest except that--

(i) the distribution of the portion of the master list may be in
electronic, written, or printed form; and

(ii) if social security or taxpayer identification numbers on the
master list are encrypted, the Secretary of State may distribute the
master list only--

(I) by compact disc or other electronic media that contains--

(aa) the recorded list of debtor names; and

(bb) an encryption program that enables the buyer, commission
merchant, and selling agent to enter a social security number for
matching against the recorded list of encrypted social security or
taxpayer identification numbers; and

(II) on the written request of the buyer, commission merchant, or
selling agent, by paper copy of the list to the requestor;

(F) the Secretary of State furnishes to those who are not
registered pursuant to (2)(D) of this section oral confirmation within
24 hours of any effective financing statement on request followed by
written confirmation to any buyer of farm products buying from a
debtor, or commission merchant or selling agent selling for a seller
covered by such statement.

(3) The term "commission merchant" means any person engaged
in the business of receiving any farm product for sale, on commission,
or for or on behalf of another person.

(4) The term "effective financing statement" means a
statement that--

(A) is an original or reproduced copy of the statement, or, in
the case of a State which (under the applicable State law provisions of
the Uniform Commercial Code) allows the electronic filing of financing
statements without the signature of the debtor, is an electronically
reproduced copy of the statement;

(B) other than in the case of an electronically reproduced copy
of the statement is signed, authorized, or otherwise authenticated by
the debtor and filed with the Secretary of State of a State by the
secured party;

(C) contains.

(i) the name and address of the secured party;

(ii) the name and address of the person indebted to the secured
party;

(iii) the social security number of the debtor or, in the case of
a debtor doing business other than as an individual, the Internal
Revenue Service taxpayer identification number of such debtor; and

(iv) a description of the farm products subject to the security
interest created by the debtor, including the amount of such products
where applicable, and the name of each county or parish in which the
farm products are produced or located;

(D) must be amended in writing, within 3 months, similarly
signed, authorized, or otherwise authenticated by the debtor and filed,
to reflect material changes;

(E) remains effective for a period of 5 years from the date of
filing, subject to extensions for additional periods of 5 years each by
refiling or filing a continuation statement within 6 months before the
expiration of the initial 5 year period;

(F) lapses on either the expiration of the effective period of
the statement or the filing of a notice signed, authorized, or
otherwise authenticated by the secured party that the statement has
lapsed, whichever occurs first;

(G) is accompanied by the requisite filing fee set by the
Secretary of State; and

(H) substantially complies with the requirements of this
subparagraph even though it contains minor errors that are not
seriously misleading.

(5) The term "farm product" means an agricultural commodity
such as wheat, corn, soybeans, or a species of livestock such as
cattle, hogs, sheep, horses, or poultry used or produced in farming
operations, or a product of such crop or livestock in its
unmanufactured state (such as ginned cotton, wool-clip, maple syrup,
milk, and eggs), that is in the possession of a person engaged in
farming operations.

(6) The term "knows" or "knowledge" means actual
knowledge.

(7) The term "security interest" means an interest in farm
products that secures payment or performance of an obligation.

(8) The term "selling agent" means any person, other than a
commission merchant, who is engaged in the business of negotiating the
sale and purchase of any farm product on behalf of a person engaged in
farming operations.

(9) The term "State" means each of the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin
Islands of the United States, American Samoa, the Commonwealth of the
Northern Mariana Islands, or the Trust Territory of the Pacific
Islands.

(10) The term "person" means any individual, partnership,
corporation, trust, or any other business entity.

(11) The term "Secretary of State" means the Secretary of
State or the designee of the State.

(d) Except as provided in subsection (e) and notwithstanding any
other provision of Federal, State, or local law, a buyer who in the
ordinary course of business buys a farm product from a seller engaged
in farming operations shall take free of a security interest created by
the seller, even though the security interest is perfected; and the
buyer knows of the existence of such interest.

(e) A buyer of farm products takes subject to a security
interest created by the seller if--

(1)(A) within 1 year before the sale of the farm products, the
buyer has received from the secured party or the seller written notice
of the security interest organized according to farm products that--

(i) is an original or reproduced copy thereof;

(ii) contains,

(I) the name and address of the secured party;

(II) the name and address of the person indebted to the secured
party;

(III) the social security number of the debtor or, in the case of
a debtor doing business other than as an individual, the Internal
Revenue Service taxpayer identification number of such debtor; and

(IV) a description of the farm products subject to the security
interest created by the debtor, including the amount of such products
where applicable, crop year, and the name of each county or parish in
which the farm products are produced or located;

(iii) must be amended in writing, within 3 months, similarly
signed, authorized, or otherwise authenticated and transmitted, to
reflect material changes;

(iv) will lapse on either the expiration period of the statement
or the transmission of a notice signed, authorized, or otherwise
authenticated by the secured party that the statement has lapsed,
whichever occurs first; and

(v) contains any payment obligations imposed on the buyer by the
secured party as conditions for waiver or release of the security
interest; and

(B) the buyer has failed to perform the payment obligations, or

(2) in the case of a farm product produced in a State that has
established a central filing system--

(A) the buyer has failed to register with the Secretary of State
of such State prior to the purchase of farm products; and

(B) the secured party has filed an effective financing statement
or notice that covers the farm products being sold; or

(3) in the case of a farm product produced in a State that has
established a central filing system, the buyer--

(A) receives from the Secretary of State of such State written
notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies
both the seller and the farm product being sold by such seller as being
subject to an effective financing statement or notice; and

(B) does not secure a waiver or release of the security interest
specified in such effective financing statement or notice from the
secured party by performing any payment obligation or otherwise.

(f) What constitutes receipt, as used in this section, shall be
determined by the law of the State in which the buyer resides.

(g)(1) Except as provided in paragraph (2) and notwithstanding any
other provision of Federal, State, or local law, a commission merchant
or selling agent who sells, in the ordinary course of business, a farm
product for others, shall not be subject to a security interest created
by the seller in such farm product even though the security interest is
perfected and even though the commission merchant or selling agent
knows of the existence of such interest.

(2) A commission merchant or selling agent who sells a farm
product for others shall be subject to a security interest created by
the seller in such farm product if--

(A) within 1 year before the sale of such farm product the
commission merchant or selling agent has received from the secured
party or the seller written notice of the security interest; organized
according to farm products, that--

(i) is an original or reproduced copy thereof;

(ii) contains,

(I) the name and address of the secured party;

(II) the name and address of the person indebted to the secured
party;

(III) the social security number of the debtor or, in the case of
a debtor doing business other than as an individual, the Internal
Revenue Service taxpayer identification number of such debtor; and

(IV) a description of the farm products subject to the security
interest created by the debtor, including the amount of such products,
where applicable, crop year, and the name of each county or parish in
which the farm products are produced or located;

(iii) must be amended in writing, within 3 months, similarly
signed, authorized, or otherwise authenticated and transmitted, to
reflect material changes;

(iv) will lapse on either the expiration period of the statement
or the transmission of a notice signed, authorized, or otherwise
authenticated by the secured party that the statement has lapsed,
whichever occurs first; and

(v) contains any payment obligations imposed on the commission
merchant or selling agent by the secured party as conditions for waiver
or release of the security interest; and

(B) the commission merchant or selling agent has failed to
perform the payment obligations;

(C) in the case of a farm product produced in a State that has
established a central filing system--

(i) the commission merchant or selling agent has failed to
register with the Secretary of State of such State prior to the
purchase of farm products; and

(ii) the secured party has filed an effective financing statement
or notice that covers the farm products being sold; or

(D) in the case of a farm product produced in a State that has
established a central filing system, the commission merchant or selling
agent--

(i) receives from the Secretary of State of such State written
notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies
both the seller and the farm products being sold by such seller as
being subject to an effective financing statement or notice; and

(ii) does not secure a waiver or release of the security interest
specified in such effective financing statement or notice from the
secured party by performing any payment obligation or
otherwise.

(3) What constitutes receipt, as used in this section, shall be
determined by the law of the State in which the buyer resides.

(h)(1) A security agreement in which a person engaged in farming
operations creates a security interest in a farm product may require
the person to furnish to the secured party a list of the buyers,
commission merchants, and selling agents to or through whom the person
engaged in farming operations may sell such farm product.

(2) If a security agreement contains a provision described in
paragraph (1) and such person engaged in farming operations sells the
farm product collateral to a buyer or through a commission
merchant or selling agent not included on such list, the person engaged
in farming operations shall be subject to paragraph (3) unless the
person--

(A) has notified the secured party in writing of the identity of
the buyer, commission merchant, or selling agent at least 7 days prior
to such sale; or

(B) has accounted to the secured party for the proceeds of such
sale not later than 10 days after such sale.

(3) A person violating paragraph (2) shall be fined $5,000 or 15
per centum of the value or benefit received for such farm product
described in the security agreement, whichever is greater.

(i) The Secretary of Agriculture shall prescribe regulations not
later than 90 days after the date of enactment of this Act to aid
States in the implementation and management of a central filing system.

(j) This section shall become effective 12 months after the date of
enactment of this Act.

[Codified to 7 U.S.C. 1631]

[Source: Section 1324 of title XIII of the Act of December 23,
1985 (Pub. L. No. 99-198; 99 Stat. 1535), effective December 24, 1986;
as amended by sections 661(1), and 662(2) of title VI of the Act of
April 4, 1996, (Pub. L. No. 104-127; 110 Stat. 1107), effective April
4, 1996; section 10604 of title X of the Act of May 13, 2002 (Pub. L.
No. 107--171; 116 Stat. 512), effective May 13, 2002; section 14215 of
title XIV of the Act of May 22, 2008 (Pub. L. No. 110--234; 122 Stat.
1466 and 1467), effective May 22, 2008]

GRAMM-LEACH-BLILEY ACT

An Act

To enhance competition in the financial services industry by
providing a prudential framework for the affiliation of banks,
securities firms, insurance companies, and other financial service
providers, and for other purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.--This Act may be cited as the
"Gramm-Leach-Bliley Act".

TITLE IFACILITATING AFFILIATION AMONG
BANKS,SECURITIES FIRMS, AND INSURANCE COMPANIES

Subtitle AAffiliations

SEC. 104. OPERATION OF STATE LAW.

(a) STATE REGULATION OF THE BUSINESS OF INSURANCE.--The
Act entitled "An Act to express the intent of Congress with
reference to the regulation of the business of insurance" and
approved March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly referred to
as the "McCarran-Ferguson Act") remains the law of the United
States.

(b) MANDATORY INSURANCE LICENSING REQUIREMENTS.--No person
shall engage in the business of insurance in a State as principal or
agent unless such person is licensed as required by the appropriate
insurance regulator of such State in accordance with the relevant State
insurance law, subject to subsections (c), (d), and (e).

(c) AFFILIATIONS.--

(1) IN GENERAL.--Except as provided in paragraph (2), no
State may, by statute, regulation, order, interpretation, or other
action, prevent or restrict a depository institution, or an affiliate
thereof, from being affiliated directly or indirectly or associated
with any person, as authorized or permitted by this Act or any other
provision of Federal law.

(2) INSURANCE.--With respect to affiliations between
depository institutions, or any affiliate thereof, and any insurer,
paragraph (1) does not prohibit--

(A) any State from--

(i) collecting, reviewing, and taking actions (including approval
and disapproval) on applications and other documents or reports
concerning any proposed acquisition of, or a change or continuation of
control of, an insurer domiciled in that State; and

(ii) exercising authority granted under applicable State law to
collect information concerning any proposed acquisition of, or a change
or continuation of control of, an insurer engaged in the business of
insurance in, and regulated as an insurer by, such State;

during the 60-day period preceding the effective date of the
acquisition or change or continuation of control, so long as the
collecting, reviewing, taking actions, or exercising authority by the
State does not have the effect of discriminating, intentionally or
unintentionally, against a depository institution or an affiliate
thereof, or against any other person based upon an association of such
person with a depository institution;

(B) any State from requiring any person that is acquiring control
of an insurer domiciled in that State to maintain or restore the
capital requirements of that insurer to the
level required under the capital
regulations of general applicability in that State to avoid the
requirement of preparing and filing with the insurance regulatory
authority of that State a plan to increase the capital of the insurer,
except that any determination by the State insurance regulatory
authority with respect to such requirement shall be made not later than
60 days after the date of notification under subparagraph (A); or

(C) any State from restricting a change in the ownership of stock
in an insurer, or a company formed for the purpose of controlling such
insurer, after the conversion of the insurer from mutual to stock form
so long as such restriction does not have the effect of discriminating,
intentionally or unintentionally, against a depository institution or
an affiliate thereof, or against any other person based upon an
association of such person with a depository institution.

(d) ACTIVITIES.--

(1) IN GENERAL.--Except as provided in paragraph (3),
and except with respect to insurance sales, solicitation, and cross
marketing activities, which shall be governed by paragraph (2), no
State may, by statute, regulation, order, interpretation, or other
action, prevent or restrict a depository institution or an affiliate
thereof from engaging directly or indirectly, either by itself or in
conjunction with an affiliate, or any other person, in any activity
authorized or permitted under this Act and the amendments made by this
Act.

(2) INSURANCE SALES.--

(A) IN GENERAL.--In accordance with the legal standards
for preemption set forth in the decision of the Supreme Court of the
United States in Barnett Bank of Marion County N.A. v. Nelson, 517 U.S.
25 (1996), no State may, by statute, regulation, order, interpretation,
or other action, prevent or significantly interfere with the ability of
a depository institution, or an affiliate thereof, to engage, directly
or indirectly, either by itself or in conjunction with an affiliate or
any other person, in any insurance sales, solicitation, or
crossmarketing activity.

(B) CERTAIN STATE LAWS PRESERVED.--Notwithstanding
subparagraph (A), a State may impose any of the following restrictions,
or restrictions that are substantially the same as but no more
burdensome or restrictive than those in each of the following clauses:

(i) Restrictions prohibiting the rejection of an insurance policy
by a depository institution or an affiliate of a depository
institution, solely because the policy has been issued or underwritten
by any person who is not associated with such depository institution or
affiliate when the insurance is required in connection with a loan or
extension of credit.

(ii) Restrictions prohibiting a requirement for any debtor,
insurer, or insurance agent or broker to pay a separate charge in
connection with the handling of insurance that is required in
connection with a loan or other extension of credit or the provision of
another traditional banking product by a depository institution, or any
affiliate of a depository institution, unless such charge would be
required when the depository institution or affiliate is the licensed
insurance agent or broker providing the insurance.

(iii) Restrictions prohibiting the use of any advertisement or
other insurance promotional material by a depository institution or any
affiliate of a depository institution that would cause a reasonable
person to believe mistakenly that--

(I) the Federal Government or a State is responsible for the
insurance sales activities of, or stands behind the credit of, the
institution or affiliate; or

(II) a State, or the Federal Government guarantees any returns on
insurance products, or is a source of payment on any insurance
obligation of or sold by the institution or affiliate;

(iv) Restrictions prohibiting the payment or receipt of any
commission or brokerage fee or other valuable consideration for
services as an insurance agent or broker to or by any person, unless
such person holds a valid State license regarding the applicable class
of insurance at the time at which the services are performed, except
that, in this clause, the term "services as an insurance agent or
broker" does not include a referral by an unlicensed person of a
customer or potential customer to a licensed insurance agent or broker
that does not include a discussion of specific insurance policy terms
and conditions.

(v) Restrictions prohibiting any compensation paid to or received
by any individual who is not licensed to sell insurance, for the
referral of a customer that seeks to purchase, or seeks an opinion or
advice on, any insurance product to a person that sells or provides
opinions or advice on such product, based on the purchase of insurance
by the customer.

(vi) Restrictions prohibiting the release of the insurance
information of a customer (defined as information concerning the
premiums, terms, and conditions of insurance coverage, including
expiration dates and rates, and insurance claims of a customer
contained in the records of the depository institution or an affiliate
thereof) to any person other than an officer, director, employee,
agent, or affiliate of a depository institution, for the purpose of
soliciting or selling insurance, without the express consent of the
customer, other than a provision that prohibits--

(I) a transfer of insurance information to an unaffiliated
insurer in connection with transferring insurance in force on existing
insureds of the depository institution or an affiliate thereof, or in
connection with a merger with or acquisition of an unaffiliated
insurer; or

(II) the release of information as otherwise authorized by State
or Federal law.

(vii) Restrictions prohibiting the use of health information
contained from the insurance records of a customer for any purpose,
other than for its activities as a licensed agent or broker, without
the express consent of the customer.

(viii) Restrictions prohibiting the extension of credit or any
product or service that is equivalent to an extension of credit, lease
or sale of property of any kind, or furnishing of any services or
fixing or varying the consideration for any of the foregoing, on the
condition or requirement that the customer obtain insurance from a
depository institution or an affiliate of a depository institution, or
a particular insurer, agent, or broker, other than a prohibition that
would prevent any such depository institution or affiliate--

(I) from engaging in any activity described in this clause that
would not violate section 106 of the Bank Holding Company Act
Amendments of 1970, as interpreted by the Board of Governors of the
Federal Reserve System; or

(II) from informing a customer or prospective customer that
insurance is required in order to obtain a loan or credit, that loan or
credit approval is contingent upon the procurement by the customer of
acceptable insurance, or that insurance is available from the
depository institution or an affiliate of the depository institution.

(ix) Restrictions requiring, when an application by a consumer
for a loan or other extension of credit from a depository institution
is pending, and insurance is offered or sold to the consumer or is
required in connection with the loan or extension of credit by the
depository institution or any affiliate thereof, that a written
disclosure by provided to the consumer or prospective customer
indicating that the customer's choice of an insurance provider will
not affect the credit decision or credit terms in any way, except that
the depository institution may impose reasonable requirements
concerning the creditworthiness of the insurer and scope of coverage
chosen.

(x) Restrictions requiring clear and conspicuous disclosure, in
writing, where practicable, to the customer prior to the sale of any
insurance policy that such policy--

(I) is not a deposit;

(II) is not insured by the Federal Deposit Insurance Corporation;

(III) is not guaranteed by any depository institution or, if
appropriate, an affiliate of any such institution or any person
soliciting the purchase of or selling insurance on the premises
thereof; and

(xi) Restrictions requiring that, when a customer obtains
insurance (other than credit insurance or flood insurance) and credit
from a depository institution, or any affiliate of such institution, or
any person soliciting the purchase of or selling insurance on the
premises thereof, the credit and insurance transactions be completed
through separate documents.

(xii) Restrictions prohibiting, when a customer obtains insurance
(other than credit insurance or flood insurance) and credit from a
depository institution or an affiliate of such institution, or any
person soliciting the purchase of or selling insurance on the premises
thereof, inclusion of the expense of insurance premiums in the primary
credit transaction without the express written consent of the customer.

(xiii) Restrictions requiring maintenance of separate and
distinct books and records relating to insurance transactions,
including all files relating to and reflecting consumer complaints, and
requiring that such insurance books and records be made available to
the appropriate State insurance regulator for inspection upon
reasonable notice.

(C) LIMITATIONS.--

(i) OCC DEFERENCE.--Section 304(e) does not apply with
respect to any State statute, regulation, order, interpretation, or
other action regarding insurance sales, solicitation, or cross
marketing activities described in subparagraph (A) that was issued,
adopted, or enacted before September 3, 1998, and that is not described
in subparagraph (B).

(ii) NONDISCRIMINATION.--Subsection (e) does not apply
with respect to any State statute, regulation, order, interpretation,
or other action regarding insurance sales, solicitation, or cross
marketing activities described in subparagraph (A) that was issued,
adopted, or enacted before September 3, 1998, and that is not described
in subparagraph (B).

(iii) CONSTRUCTION.--Nothing in this paragraph shall be
construed--

(I) to limit the applicability of the decision of the Supreme
Court in Barnett Bank of Marion County N.A. v. Nelson, 517 U.S. 25
(1996) with respect to any State statute, regulation, order,
interpretation, or other action that is not referred to or described in
subparagraph (B); or

(II) to create any inference with respect to any State statute,
regulation, order, interpretation, or other action that is not
described in this paragraph.

(3) INSURANCE ACTIVITIES OTHER THAN SALES.--State
statutes, regulations, interpretations, orders, and other actions shall
not be preempted under paragraph (1) to the extent that they--

(A) relate to, or are issued, adopted, or enacted for the purpose
of regulating the business of insurance in accordance with the Act
entitled "An Act to express the intent of Congress with reference to
the regulation of the business of insurance" and approved March 9,
1945 (15 U.S.C. 1011 et seq.) (commonly referred to as the
"McCarran-Ferguson Act");

(B) apply only to persons that are not depository institutions,
but that are directly engaged in the business of insurance (except that
they may apply to depository institutions engaged in providing savings
bank life insurance as principal to the extent of regulating such
insurance);

(C) do not relate to or directly or indirectly regulate insurance
sales, solicitations, or cross marketing activities; and

(D) are not prohibited under subsection (e).

(4) FINANCIAL ACTIVITIES OTHER THAN INSURANCE.--No State
statute, regulation, order, interpretation, or other action shall be
preempted under paragraph (1) to the extent that--

(A) it does not relate to, and is not issued and adopted, or
enacted for the purpose of regulating, directly or indirectly,
insurance sales, solicitations, or cross marketing activities covered
under paragraph (2);

(B) it does not relate to, and is not issued and adopted, or
enacted for the purpose of regulating, directly or indirectly, the
business of insurance activities other than sales, solicitations, or
cross marketing activities, covered under paragraph (3);

(C) it does not relate to securities investigations or
enforcement actions referred to in subsection (f); and

(D) it--

(i) does not distinguish by its terms between depository
institutions, and affiliates thereof, engaged in the activity at issue
and other persons engaged in the same activity in a
manner that is in any way adverse
with respect to the conduct of the activity by any such depository
institution or affiliate engaged in the activity at issue;

(ii) as interpreted or applied, does not have, and will not have,
an impact on depository institutions, or affiliates thereof, engaged in
the activity at issue, or any person who has an association with any
such depository institution or affiliate, that is substantially more
adverse than its impact on other persons engaged in the same activity
that are not depository institutions or affiliates thereof, or persons
who do not have an association with any such depository institution or
affiliate;

(iii) does not effectively prevent a depository institution or
affiliate thereof from engaging in activities authorized or permitted
by this Act or any other provision of Federal law; and

(iv) does not conflict with the intent of this Act generally to
permit affiliations that are authorized or permitted by Federal law.

(e) NONDISCRIMINATION.--Except as provided in any
restrictions described in subsection (d)(2)(B), no State may, by
statute, regulation, order, interpretation, or other action, regulate
the insurance activities authorized or permitted under this Act or any
other provision of Federal law of a depository institution, or
affiliate thereof, to the extent that such statute, regulation, order,
interpretation, or other action--

(1) distinguishes by its terms between depository institutions,
or affiliates thereof, and other persons engaged in such activities, in
a manner that is in any way adverse to any such depository institution,
or affiliate thereof;

(2) as interpreted or applied, has or will have an impact on
depository institutions, or affiliates thereof, that is substantially
more adverse than its impact on other persons providing the same
products or services or engaged in the same activities that are not
depository institutions, or affiliates thereof, or persons or entities
affiliated therewith;

(3) effectively prevents a depository institution, or affiliate
thereof, from engaging in insurance activities authorized or permitted
by this Act or any other provision of Federal law; or

(4) conflicts with the intent of this Act generally to permit
affiliations that are authorized or permitted by Federal law between
depository institutions, or affiliates thereof, and persons engaged in
the business of insurance.

(f) LIMITATION.--Subsections (c) and (d) shall not be
construed to affect--

(1) the jurisdiction of the securities commission (or any agency
or office performing like functions) of any State, under the laws of
such State--

(A) to investigate and bring enforcement actions, consistent with
section 18(c) of the Securities Act of 1933, with respect to fraud or
deceit or unlawful conduct by any person, in connection with securities
or securities transactions; or

(B) to require the registration of securities or the licensure or
registration of brokers, dealers, or investment advisers (consistent
with section 203A of the
Investment Advisers Act of 1940), or the associated persons of a
broker, dealer, or investment adviser (consistent with such section
203A); or

(2) State laws, regulations, orders, interpretations, or other
actions of general applicability relating to the governance of
corporations, partnerships, limited liability companies, or other
business associations incorporated or formed under the laws of that
State or domiciled in that State, or the applicability of the antitrust
laws of any State or any State law that is similar to the antitrust
laws if such laws, regulations, orders, interpretations, or other
actions are not inconsistent with the purposes of this Act to authorize
or permit certain affiliations and to remove barriers to such
affiliations.

(g) DEFINITIONS.--For purposes of this section, the
following definitions shall apply:

(1) AFFILIATE.--The term "affiliate" means any
company that controls, is controlled by, or is under common control
with another company.

(2) ANTITRUST LAWS.--The term "antitrust laws" has
the meaning given the term in subsection (a) of the first section of
the Clayton Act, and includes section 5 of the Federal Trade Commission
Act (to the extent that such section 5 relates to unfair methods of
competition).

(3) DEPOSITORY INSTITUTION.--The term "depository
institution"--

(A) has the meaning given the term in
section 3 of the Federal
Deposit Insurance Act; and

(B) includes any foreign bank that maintains a branch, agency, or
commercial lending company in the United States.

(4) INSURER.--The term "insurer" means any person
engaged in the business of insurance.

(5) STATE.--The term "State" means any State of
the United States, the District of Columbia, any territory of the
United States, Puerto Rico, Guam, American Samoa, the Trust Territory
of the Pacific Islands, the Virgin Islands, and the Northern Mariana
Islands.

[Codified to 15 U.S.C. 6701]

[Source: Section 104 of title I of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1352), effective November 12, 1999]

SEC. 109. STUDY OF FINANCIAL MODERNIZATION'S EFFECT
ON THE ACCESSIBILITY OF SMALL BUSINESS AND FARM LOANS.

(a) STUDY.--The Secretary of the Treasury, in consultation
with the Federal banking agencies (as defined in
section 3(z) of the Federal
Deposit Insurance Act), shall conduct a study of the extent to which
credit is being provided to and for small businesses and farms, as a
result of this Act and the amendments made by this Act.

(b) REPORT.--Before the end of the 5-year period beginning
on the date of the enactment of this Act, the Secretary, in
consultation with the Federal banking agencies, shall submit a report
to the Congress on the study conducted pursuant to subsection (a) and
shall include such recommendations as the Secretary determines to be
appropriate for administrative and legislative action.

[Codified to 12 U.S.C. 252 nt]

[Source: Section 109 of title I of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1362), effective November 12, 1999]

Subtitle BStreamlining Supervision ofBank Holding
Companies

SEC. 114. PRUDENTIAL SAFEGUARDS.

(a) COMPTROLLER OF THE CURRENCY.--

(1) IN GENERAL.--The Comptroller of the Currency may, by
regulation or order, impose restrictions or requirements on
relationships or transactions between a national bank and a subsidiary
of the national bank that the Comptroller finds are--

(A) consistent with the purposes of this Act, title LXII of the
Revised Statutes of the United States, and other Federal law applicable
to national banks; and

(B) appropriate to avoid any significant risk to the safety and
soundness of insured depository institutions or the Deposit Insurance
Fund or other adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices.

(2) REVIEW.--The Comptroller of the Currency shall
regularly--

(A) review all restrictions or requirements established pursuant
to paragraph (1) to determine whether there is a continuing need for
any such restriction or requirement to carry out the purposes of the
Act, including the avoidance of any adverse effect referred to in
paragraph (1)(B); and

(B) modify or eliminate any such restriction or requirement the
Comptroller finds is no longer required for such purposes.

(b) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.--

(1) IN GENERAL.--The Board of Governors of the Federal
Reserve System may, by regulation or order, impose restrictions or
requirements on relationships or transactions--

(A) between a depository institution subsidiary of a bank holding
company and any affiliate of such depository institution (other than a
subsidiary of such institution); or

(B) between a State member bank and a subsidiary of such bank;

if the Board makes a finding described in paragraph (2) with respect
to such restriction or requirement.

(2) FINDING.--The Board of Governors of the Federal
Reserve System may exercise authority under paragraph (1) if the Board
finds that the exercise of such authority is--

(A) consistent with the purposes of this Act, the Bank Holding
Company Act of 1956, the Federal Reserve Act, and other Federal law
applicable to depository institution subsidiaries of bank holding
companies or State member banks, as the case may be; and

(B) appropriate to prevent an evasion of any provision of law
referred to in subparagraph (A) or to avoid any significant risk to the
safety and soundness of depository institutions or the Deposit
Insurance Fund or other adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices.

(3) REVIEW.--The Board of Governors of the Federal
Reserve System shall regularly--

(A) review all restrictions or requirements established pursuant
to paragraph (1) or (4) to determine whether there is a continuing need
for any such restriction or requirement to carry out the purposes of
the Act, including the avoidance of any adverse effect referred to in
paragraph (2)(B) or (4)(B); and

(B) modify or eliminate any such restriction or requirement the
Board finds is no longer required for such purposes.

(4) FOREIGN BANKS.--The Board may, by regulation or
order, impose restrictions or requirements on relationships or
transactions between a branch, agency, or commercial lending company of
a foreign bank in the United States and any affiliate in the United
States of such foreign bank that the Board finds are--

(A) consistent with the purposes of this Act, the Bank Holding
Company Act of 1956, the Federal Reserve Act, and other Federal law
applicable to foreign banks and their affiliates in the United States;
and

(B) appropriate to prevent an evasion of any provision of law
referred to in subparagraph (A) or to avoid any significant risk to the
safety and soundness of depository institutions or the Deposit
Insurance Fund or other adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices.

(c) FEDERAL DEPOSIT INSURANCE CORPORATION.--

(1) IN GENERAL.--The Federal Deposit Insurance
Corporation may, by regulation or order, impose restrictions or
requirements on relationships or transactions between a State nonmember
bank (as defined in section 3 of the Federal Deposit Insurance Act) and
a subsidiary of the State nonmember bank that the Corporation finds
are--

(A) consistent with the purposes of this Act, the Federal Deposit
Insurance Act, or other Federal law applicable to State nonmember
banks; and

(B) appropriate to avoid any significant risk to the safety and
soundness of depository institutions or the Deposit Insurance Fund or
other adverse effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests, or unsound
banking practices.

(A) review all restrictions or requirements established pursuant
to paragraph (1) to determine whether there is a continuing need for
any such restriction or requirement to carry out the purposes of the
Act, including the avoidance of any adverse effect referred to in
paragraph (1)(B); and

(B) modify or eliminate any such restriction or requirement the
Corporation finds is no longer required for such purposes.

[Codified to 12 U.S.C. 1828a]

[Source: Section 114 of title I of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1371), effective November 12, 1999;
section 9(h)(1) of the Act of February 15, 2006 (Pub. L. No. 107--193;
119 Stat. 3617), effective date shall take effect on the date of the
merger of the Bank Insurance Fund and the Savings Association Insurance
Fund pursuant to the Federal Deposit Insurance Reform Act of
2005]

SEC. 115. EXAMINATION OF INVESTMENT COMPANIES.

(a) EXCLUSIVE COMMISSION AUTHORITY.--Except as provided in
subsection (c), a Federal banking agency may not inspect or examine any
registered investment company that is not a bank holding company or a
savings and loan holding company.

(b) EXAMINATION RESULTS AND OTHER INFORMATION.--The
Commission shall provide to any Federal banking agency, upon request,
the results of any examination, reports, records, or other information
with respect to any registered investment company to the extent
necessary for the agency to carry out its statutory responsibilities.

(c) CERTAIN EXAMINATIONS AUTHORIZED.--Nothing in this
section shall prevent the Corporation, if the Corporation finds it
necessary to determine the condition of an insured depository
institution for insurance purposes, from examining an affiliate of any
insured depository institution, pursuant to its authority under
section 10(b)(4) of the
Federal Deposit Insurance Act, as may be necessary to disclose fully
the relationship between the insured depository institution and the
affiliate, and the effect of such relationship on the insured
depository institution.

(d) DEFINITIONS.--For purposes of this section, the
following definitions shall apply:

(1) BANK HOLDING COMPANY.--The term "bank holding
company" has the meaning given the term in
section 2 of the Bank Holding
Company Act of 1956.

(2) COMMISSION.--The term "Commission" means the
Securities and Exchange Commission.

(4) FEDERAL BANKING AGENCY.--The term "Federal
banking agency" has the meaning given the term in section 3(z) of
the Federal Deposit Insurance Act.

(5) INSURED DEPOSITORY INSTITUTION.--The term
"insured depository institution" has the meaning given the term
in section 3(c) of the Federal
Deposit Insurance Act.

(6) REGISTERED INVESTMENT COMPANY.--The term
"registered investment company" means an investment company that
is registered with the Commission under the Investment Company Act of
1940.

(7) SAVINGS AND LOAN HOLDING COMPANY.--The term
"savings and loan holding company" has the meaning given the term
in section 10(a)(1)(D) of the
Home Owners' Loan Act.

[Codified to 12 U.S.C. 1820a]

[Source: Section 115 of title I of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1371), effective November 12, 1999]

Subtitle DPreservation of FTC Authority

SEC. 132. INTERAGENCY DATA SHARING.

(a) IN GENERAL.--To the extent not prohibited by other
law, the Comptroller of the Currency, the Director of the Office of
Thrift Supervision, the Federal Deposit Insurance Corporation, and the
Board of Governors of the Federal Reserve System shall make available
to the Attorney General and the Federal Trade Commission any data in
the possession of any such banking agency that the antitrust agency
deems necessary for antitrust review of any transaction requiring
notice to any such antitrust agency or the
approval of such agency under
section 3 or
4 of the Bank Holding Company
Act of 1956, section 18(c) of
the Federal Deposit Insurance Act, the National Bank Consolidation and
Merger Act, section 10 of the Home Owners' Loan Act, or the antitrust
laws.

(b) CONFIDENTIALITY REQUIREMENTS.--

(1) IN GENERAL.--Any information or material obtained by
any agency pursuant to subsection (a) shall be treated as confidential.

(2) PROCEDURES FOR DISCLOSURE.--If any information or
material obtained by any agency pursuant to subsection (a) is proposed
to be disclosed to a third party, written notice of such disclosure
shall first be provided to the agency from which such information or
material was obtained and an opportunity shall be given to such agency
to oppose or limit the proposed disclosure.

(3) OTHER PRIVILEGES NOT WAIVED BY DISCLOSURE UNDER THIS
SECTION.--The provision by any Federal agency of any information or
material pursuant to subsection (a) to another agency shall not
constitute a waiver, or otherwise affect, any privilege any agency or
person may claim with respect to such information under Federal or
State law.

(4) EXCEPTION.--No provision of this section shall be
construed as preventing or limiting access to any information by any
duly authorized committee of the Congress or the Comptroller General of
the United States.

(1) any information or material obtained by any Federal banking
agency (as defined in section
3(z) of the Federal Deposit Insurance Act) from any other
Federal banking agency; and

(2) any report of examination or other confidential supervisory
information obtained by any State agency or authority, or any other
person, from a Federal banking agency.

[Codified to 12 U.S.C. 1828b]

[Source: Section 132 of title I of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1382), effective November 12, 1999]

TITLE IIFUNCTIONAL REGULATION

Subtitle DBanks and Bank
HoldingCompanies

SEC. 241. CONSULTATION.

(a) IN GENERAL.--The Securities and Exchange Commission
shall consult and coordinate comments with the appropriate Federal
banking agency before taking any action or rendering any opinion with
respect to the manner in which any insured depository institution or
depository institution holding company reports loan loss reserves in
its financial statement, including the amount of any such loan loss
reserve.

(b) DEFINITIONS.--For purposes of subsection (a), the
terms "insured depository institution", "depository
institution holding company", and "appropriate Federal banking
agency" have the same meaning as given in
section 3 of the Federal
Deposit Insurance Act.

[Codified to 15 U.S.C. 78m nt]

[Source: Section 241 of title II of the Act of November
12, 1999 (Pub. L. No. 106--102; 113 Stat.), effective November 12,
1999]

TITLE IIIINSURANCE

Subtitle AState Regulation of Insurance

SEC. 301. FUNCTIONAL REGULATIONS OF INSURANCE.

The insurance activities of any person (including a national bank
exercising its power to act as agent under the eleventh undesignated
paragraph of section 13 of the Federal Reserve Act) shall be
functionally regulated by the States, subject to section 104.

(a) FILING IN COURT OF APPEALS.--In the case of a
regulatory conflict between a State insurance regulator and a Federal
regulator regarding insurance issues, including whether a State law,
rule, regulation, order, or interpretation regarding any insurance
sales or solicitation activity is properly treated as preempted under
Federal law, the Federal or State regulator may seek expedited judicial
review of such determination by the United States Court of Appeals for
the circuit in which the State is located or in the United States Court
of Appeals for the District of Columbia Circuit by filing a petition
for review in such court.

(b) EXPEDITED REVIEW.--The United States Court of Appeals
in which a petition for review is filed in accordance with subsection
(a) shall complete all action on such petition, including rendering a
judgment, before the end of the 60-day period beginning on the date on
which such petition is filed, unless all parties to such proceeding
agree to any extension of such period.

(c) SUPREME COURT REVIEW.--Any request for certiorari to
the Supreme Court of the United States of any judgment of a United
States Court of Appeals with respect to a petition for review under
this section shall be filed with the Supreme Court of the United States
as soon as practicable after such judgment is issued.

(d) STATUTE OF LIMITATION.--No petition may be filed under
this section challenging an order, ruling, determination, or other
action of a Federal regulator or State insurance regulator after the
later of--

(1) the end of the 12-month period beginning on the date on which
the first public notice is made of such order, ruling, determination or
other action in its final form; or

(2) the end of the 6-month period beginning on the date on which
such order, ruling, determination, or other action takes effect.

(e) STANDARD OF REVIEW.--The court shall decide a petition
filed under this section based on its review on the merits of all
questions presented under State and Federal law, including the nature
of the product or activity and the history and purpose of its
regulation under State and Federal law, without unequal deference.

Except as provided in section 104(c)(2), no State may, by law,
regulation, order, interpretation, or otherwise--

(1) prevent or significantly interfere with the ability of any
insurer, or any affiliate of an insurer (whether such affiliate is
organized as a stock company, mutual holding company, or otherwise), to
become a financial holding company or to acquire control of a
depository institution;

(2) limit the amount of an insurer's assets that may be invested
in the voting securities of a depository institution (or any company
which controls such institution), except that the laws of an insurer's
State of domicile may limit the amount of such investment to an amount
that is not less than 5 percent of the insurer's admitted assets; or

(3) prevent, significantly interfere with, or have the authority
to review, approve, or disapprove a plan of reorganization by which an
insurer proposes to reorganize from mutual form to become a stock
insurer (whether as a direct or indirect subsidiary of a mutual holding
company or otherwise) unless such State is the State of domicile of the
insurer.

(a) PURPOSE.--It is the intention of the Congress that the
Board of Governors of the Federal Reserve System, as the umbrella
supervisor for financial holding companies, and the State insurance
regulators, as the functional regulators of companies engaged in
insurance activities, coordinate efforts to supervise companies that
control both a depository institution and a company engaged in
insurance activities regulated under State law. In particular, Congress
believes that the Board and the State insurance regulators should
share, on a confidential basis, information relevant to the supervision
of companies that control both a depository institution and a company
engaged in insurance activities, including information regarding the
financial health of the consolidated organization and information
regarding transactions and relationships between insurance companies
and affiliated depository institutions. The appropriate Federal banking
agencies for depository institutions should also share, on a
confidential basis, information with the relevant State insurance
regulators regarding transactions and relationships between depository
institutions and affiliated companies engaged in insurance activities.
The purpose of this section is to encourage this coordination and
confidential sharing of information, and to thereby improve both the
efficiency and the quality of the supervision of financial holding
companies and their affiliated depository institutions and companies
engaged in insurance activities.

(b) EXAMINATION RESULTS AND OTHER INFORMATION.--

(1) INFORMATION OF THE BOARD.--Upon the request of the
appropriate insurance regulator of any State, the Board may provide any
information of the Board regarding the financial condition, risk
management policies, and operations of any financial holding company
that controls a company that is engaged in insurance activities and is
regulated by such State insurance regulator, and regarding any
transaction or relationship between such an insurance company and any
affiliated depository institution. The Board may provide any other
information to the appropriate State insurance regulator that the Board
believes is necessary or appropriate to permit the State insurance
regulator to administer and enforce applicable State insurance laws.

(2) BANKING AGENCY INFORMATION.--Upon the request of the
appropriate insurance regulator of any State, the appropriate Federal
banking agency may provide any information of the agency regarding any
transaction or relationship between a depository institution supervised
by such Federal banking agency and any affiliated company that is
engaged in insurance activities regulated by such State insurance
regulator. The appropriate Federal banking agency may provide any other
information to the appropriate State insurance regulator that the
agency believes is necessary or appropriate to permit the State
insurance regulator to administer and enforce applicable State
insurance laws.

(3) STATE INSURANCE REGULATOR INFORMATION.--Upon the
request of the Board or the appropriate Federal banking agency, a State
insurance regulator may provide any
examination or other reports,
records, or other information to which such insurance regulator may
have access with respect to a company which--

(A) is engaged in insurance activities and regulated by
such insurance regulator; and

(B) is an affiliate of a depository institution or financial
holding company.

(c) CONSULTATION.--Before making any determination
relating to the initial affiliation of, or the continuing affiliation
of, a depository institution or financial holding company with a
company engaged in insurance activities, the appropriate Federal
banking agency shall consult with the appropriate State insurance
regulator of such company and take the views of such insurance
regulator into account in making such determination.

(d) EFFECT ON OTHER AUTHORITY.--Nothing in this section
shall limit in any respect the authority of the appropriate Federal
banking agency with respect to a depository institution or bank holding
company or any affiliate thereof under any provision of law.

(e) CONFIDENTIALITY AND PRIVILEGE.--

(1) CONFIDENTIALITY.--The appropriate Federal banking
agency shall not provide any information or material that is entitled
to confidential treatment under applicable Federal banking agency
regulations, or other applicable law, to a State insurance regulator
unless such regulator agrees to maintain the information or material in
confidence and to take all reasonable steps to oppose any effort to
secure disclosure of the information or material by the regulator. The
appropriate Federal banking agency shall treat as confidential any
information or material obtained from a State insurance regulator that
is entitled to confidential treatment under applicable State
regulations, or other applicable law, and take all reasonable steps to
oppose any effort to secure disclosure of the information or material
by the Federal banking agency.

(2) PRIVILEGE.--The provision pursuant to this section
of information or material by a Federal banking agency or State
insurance regulator shall not constitute a waiver of, or otherwise
affect, any privilege to which the information or material is otherwise
subject.

(f) DEFINITIONS.--For purposes of this section, the
following definitions shall apply:

For purposes of this subtitle, the term "State" means any
State of the United States, the District of Columbia, any territory of
the United States, Puerto Rico, Guam, American Samoa, the Trust
Territory of the Pacific Islands, the Virgin Islands, and the Northern
Mariana Islands.

(a) PRIVACY OBLIGATION POLICY.--It is the policy of the
Congress that each financial institution has an affirmative and
continuing obligation to respect the privacy of its customers and to
protect the security and confidentiality of those customers' nonpublic
personal information.

(b) FINANCIAL INSTITUTIONS SAFEGUARDS.--In furtherance of
the policy in subsection (a), each agency or authority described in
section 505(a) shall establish appropriate standards for the financial
institutions subject to their jurisdiction relating to administrative,
technical, and physical safeguards--

(1) to insure the security and confidentiality of customer
records and information;

(2) to protect against any anticipated threats or hazards to the
security or integrity of such records; and

(3) to protect against unauthorized access to or use of such
records or information which could result in substantial harm or
inconvenience to any customer.

SEC. 502. OBLIGATIONS WITH RESPECT TO DISCLOSURES OF
PERSONAL INFORMATION.

(a) NOTICE REQUIREMENTS.--Except as otherwise provided in
this subtitle, a financial institution may not, directly or through any
affiliate, disclose to a nonaffiliated third party any nonpublic
personal information, unless such financial institution provides or has
provided to the consumer a notice that complies with section 503.

(b) OPT OUT.--

(1) IN GENERAL.--A financial institution may not
disclose nonpublic personal information to a nonaffiliated third party
unless--

(A) such financial institution clearly and conspicuously
discloses to the consumer, in writing or in electronic form or other
form permitted by the regulations prescribed under section 504, that
such information may be disclosed to such third party;

(B) the consumer is given the opportunity, before the time that
such information is initially disclosed, to direct that such
information not be disclosed to such third party; and

(C) the consumer is given an explanation of how the consumer can
exercise that nondisclosure option.

(2) EXCEPTION.--This subsection shall not prevent a
financial institution from providing nonpublic personal information to
a nonaffiliated third party to perform services for or functions on
behalf of the financial institution, including marketing of the
financial institution's own products or services, or financial
products or services offered pursuant to joint agreements between two
or more financial institutions that comply with the requirements
imposed by the regulations prescribed under section 504, if the
financial institution fully discloses the providing of such information
and enters into a contractual agreement with the third party that
requires the third party to maintain the confidentiality of such
information.

(c) LIMITS ON REUSE OF INFORMATION.--Except as otherwise
provided in this subtitle, a nonaffiliated third party that receives
from a financial institution nonpublic personal information under this
section shall not, directly or through an affiliate of such receiving
third party, disclose such information to any other person that is a
nonaffiliated third party of both the financial institution and such
receiving third party, unless such disclosure would be lawful if made
directly to such other person by the financial institution.

(d) LIMITATIONS ON THE SHARING OF ACCOUNT NUMBER INFORMATION
FOR MARKETING PURPOSES.--A financial institution shall not
disclose, other than to a consumer reporting agency, an account number
or similar form of access number or access code for a credit card
account, deposit account, or transaction account of a consumer to any
nonaffiliated third party for use in telemarketing, direct mail
marketing, or other marketing through electronic mail to the consumer.

(e) GENERAL EXCEPTIONS.--Subsections (a) and (b) shall not
prohibit the disclosure of nonpublic personal information--

(1) as necessary to effect, administer, or enforce a transaction
requested or authorized by the consumer, or in connection
with--

(A) servicing or processing a financial product or service
requested or authorized by the consumer;

(B) maintaining or servicing the consumer's account with the
financial institution, or with another entity as part of a private
label credit card program or other extension of credit on behalf of
such entity; or

(C) a proposed or actual securitization, secondary market sale
(including sales of servicing rights), or similar transaction related
to a transaction of the consumer;

(2) with the consent or at the direction of the consumer;

(3)(A) to protect the confidentiality or security of the
financial institution's records pertaining to the consumer, the
service or product, or the transaction therein; (B) to protect against
or prevent actual or potential fraud, unauthorized transactions,
claims, or other liability; (C) for required institutional risk
control, or for resolving customer disputes or inquiries; (D) to
persons holding a legal or beneficial interest relating to the
consumer; or (E) to persons acting in a fiduciary or representative
capacity on behalf of the consumer;

(5) to the extent specifically permitted or required under other
provisions of law and in accordance with the Right to Financial Privacy
Act of 1978, to law enforcement agencies (including the Bureau of
Consumer Financial
Protection1
a Federal functional regulator, the Secretary of the Treasury with
respect to subchapter II of chapter 53 of title 31, United States Code,
and chapter 2 of title I of Public Law 91--508
(12 U.S.C. 1951--1959), a State
insurance authority, or the Federal Trade Commission), self-regulatory
organizations, or for an investigation on a matter related to public
safety;

(6)(A) to a consumer reporting agency in accordance with the Fair
Credit Reporting Act, or (B) from a consumer report reported by a
consumer reporting agency;

(7) in connection with a proposed or actual sale, merger,
transfer, or exchange of all or a portion of a business or operating
unit if the disclosure of nonpublic personal information concerns
solely consumers of such business or unit; or

(8) to comply with Federal, State, or local laws, rules, and
other applicable legal requirements; to comply with a properly
authorized civil, criminal, or regulatory investigation or subpoena or
summons by Federal, State, or local authorities; or to respond to
judicial process or government regulatory authorities having
jurisdiction over the financial institution for examination,
compliance, or other purposes as authorized by law.

[Codified to 15 U.S.C. 6802]

[Source: Section 502 of title V of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1437), effective November 12, 1999;
amended by section 1093(z) of title X of the Act of July 21, 2010
(Pub. L. No. 111--203; 124 Stat. 2095), effective July 21,
2010]

SEC. 503. DISCLOSURE OF INSTITUTION PRIVACY
POLICY.

(a) DISCLOSURE REQUIRED.--At the time of establishing a
customer relationship with a consumer and not less than annually during
the continuation of such relationship, a financial institution shall
provide a clear and conspicuous disclosure to such consumer, in writing
or in electronic form or other form permitted by the regulations
prescribed under section 504, of such financial institution's policies
and practices with respect to--

(1) disclosing nonpublic personal information to affiliates and
nonaffiliated third parties, consistent with section 502, including the
categories of information that may be disclosed;

(2) disclosing nonpublic personal information of persons who have
ceased to be customers of the financial institution; and

(3) protecting the nonpublic personal information of consumers.

(b) REGULATIONS.--Disclosures required by subsection (a)
shall be made in accordance with the regulations prescribed under
section 504.

(1) the policies and practices of the institution with respect to
disclosing nonpublic personal information to nonaffiliated third
parties, other than agents of the institution, consistent with section
502 of this subtitle, and including--

(A) the categories of persons to whom the information is or may
be disclosed, other than the persons to whom the information may be
provided pursuant to section 502(e); and

(B) the policies and practices of the institution with respect to
disclosing of nonpublic personal information of persons who have ceased
to be customers of the financial institution;

(2) the categories of nonpublic personal information that are
collected by the financial institution;

(3) the policies that the institution maintains to protect the
confidentiality and security of nonpublic personal information in
accordance with section 501; and

(4) the disclosures required, if any, under
section 603(d)(2)(A)(iii) of the
Fair Credit Reporting Act.

(d) EXEMPTION FOR CERTIFIED PUBLIC ACCOUNTANTS.--

(1) IN GENERAL.--The disclosure requirements of
subsection (a) do not apply to any person, to the extent that the
person is--

(A) a certified public accountant;

(B) certified or licensed for such purpose by a State; and

(C) subject to any provision of law, rule, or regulation issued
by a legislative or regulatory body of the State, including rules of
professional conduct or ethics, that prohibits disclosure of nonpublic
personal information without the knowing and expressed consent of the
consumer.

(2) LIMITATION.--Nothing in this subsection shall be
construed to exempt or otherwise exclude any financial institution that
is affiliated or becomes affiliated with a certified public accountant
described in paragraph (1) from any provision of this section.

(3) DEFINITIONS.--For purposes of this subsection, the
term "State" means any State or territory of the United States,
the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust
Territory of the Pacific Islands, the Virgin Islands, or the Northern
Mariana Islands.

(e) MODEL FORMS.--

(1) IN GENERAL.--The agencies referred to in section
504(a)(1) shall jointly develop a model form which may be used, at the
option of the financial institution, for the provision of disclosures
under this section.

(2) FORMAT.--A model form developed under paragraph (1)
shall--

(A) be comprehensible to consumers, with a clear format and
design;

(B) Provide for clear and conspicuous disclosures;

(C) enable consumers easily to identify the sharing practices of
a financial institution and to compare privacy practices among
financial institutions; and

(D) be succinct, and use an easily readable type font.

(3) TIMING.--A model form required to be developed by
this subsection shall be issued in proposed form for public comment not
later than 180 days after the date of enactment of this subsection.

(4) SAFE HARBOR.--Any financial institution that elects
to provide the model form developed by the agencies under this
subsection shall be deemed to be in compliance with the disclosures
required under this section.

[Codified to 15 U.S.C. 6803]

[Source: Section 503 of title V of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1439), effective November 12, 1999;
section 609 of title VI and section 728 of title VII of the Act of
October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1983, 1984, and
2003), effective October 13, 2006]

SEC. 504. RULEMAKING.

(a) REGULATORY AUTHORITY.--

(1) RULEMAKING.--

(A) IN GENERAL.--Except as provided in subparagraph (C),
the Bureau of Consumer Financial Protection and the Securities and
Exchange Commission shall have authority to prescribe such regulations
as may be necessary to carry out the purposes of this subtitle with
respect to financial institutions and other persons subject to their
respective jurisdiction under section 505 (and notwithstanding subtitle
B of the Consumer Financial Protection Act of 2010), except that the
Bureau of Consumer Financial Protection shall not have authority to
prescribe regulations with respect to the standards under section 501.

(B) CFTC.--The Commodity Futures Trading Commission
shall have authority to prescribe such regulations as may be necessary
to carry out the purposes of this subtitle with respect to financial
institutions and other persons subject to the jurisdiction of the
Commodity Futures Trading Commission under section 5g of the Commodity
Exchange Act.

(C) FEDERAL TRADE COMMISSION AUTHORITY.--Notwithstanding
the authority of the Bureau of Consumer Financial Protection under
subparagraph (A), the Federal Trade Commission shall have authority to
prescribe such regulations as may be necessary to carry out the
purposes of this subtitle with respect to any financial institution
that is a person described in section 1029(a) of the Consumer Financial
Protection Act of 2010.

(D) RULE OF CONSTRUCTION.--Nothing in this paragraph
shall be construed to alter, affect, or otherwise limit the authority
of a State insurance authority to adopt regulations to carry out this
subtitle.

(2) COORDINATION, CONSISTENCY, AND COMPARABILITY.-- Each
of the agencies authorized under paragraph (1) to prescribe regulations
shall consult and coordinate with the other such agencies and, as
appropriate, and with representatives of State insurance authorities
designated by the National Association of Insurance Commissioners, for
the purpose of assuring, to the extent possible, that the regulations
prescribed by each such agency are consistent and comparable with the
regulations prescribed by the other such agencies.

(3) PROCEDURES AND DEADLINE.--Such regulations shall be
prescribed in accordance with applicable requirements of title 5,
United States Code.

(b) AUTHORITY TO GRANT EXCEPTIONS.--The regulations
prescribed under subsection (a) may include such additional exceptions
to subsections (a) through (d) of section 502 as are deemed consistent
with the purposes of this subtitle.

[Codified to 15 U.S.C. 6804]

[Source: Section 504 of title V of the Act of November 12, 1999
(Pub. L. No. 106--102; 113 Stat. 1439), effective November 12, 1999; as
amended by section 1093(3) of title X of the Act of July 21, 2010
(Pub. L. No. 111--203; 124 Stat. 2095 and 2096), effective July 21,
2010]

SEC. 505. ENFORCEMENT.

(a) IN GENERAL.--Subject to subtitle B of the Consumer
Financial Protection Act of 2010, this subtitle and the regulations
prescribed thereunder shall be enforced by the Bureau of Consumer
Financial Protection, the Federal functional regulators, the State
insurance authorities, and the Federal Trade Commission with respect to
financial institutions and other persons subject to their jurisdiction
under applicable law, as follows:

(1) Under section 8 of
the Federal Deposit Insurance Act, by the appropriate Federal banking
agency, as defined in section 3(q) of the Federal Deposit Insurance
Act, in the case of--

(B) member banks of the Federal Reserve System (other than
national banks), branches and agencies of foreign banks (other than
Federal branches, Federal agencies, and insured State branches of
foreign banks), commercial lending companies owned or
controlled by foreign banks,
organizations operating under section 25 or
25A of the Federal Reserve Act, and
bank holding companies and their nonbank subsidiaries or affiliates
(except brokers, dealers, persons providing insurance, investment
companies, and investment advisers);

(C) banks insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), insured State
branches of foreign banks, and any subsidiaries of such entities
(except brokers, dealers, persons providing insurance, investment
companies, and investment advisers); and

(D) savings associations the deposits of which are insured by the
Federal Deposit Insurance Corporation, and any subsidiaries of such
savings associations (except brokers, dealers, persons providing
insurance, investment companies, and investment advisers).

(2) Under the Federal Credit Union Act, by the Board of the
National Credit Union Administration with respect to any federally
insured credit union, and any subsidiaries of such an entity.

(3) Under the Securities Exchange Act of 1934, by the Securities
and Exchange Commission with respect to any broker or dealer.

(4) Under the Investment Company Act of 1940, by the Securities
and Exchange Commission with respect to investment companies.

(5) Under the Investment Advisers Act of 1940, by the Securities
and Exchange Commission with respect to investment advisers registered
with the Commission under such Act.

(6) Under State insurance law, in the case of any person engaged
in providing insurance, by the applicable State insurance authority of
the State in which the person is domiciled, subject to section 104 of
this Act.

(7) Under the Federal Trade Commission Act, by the Federal Trade
Commission for any other financial institution or other person that is
not subject to the jurisdiction of any agency or authority under
paragraphs (1) through (6) of this subsection.

(8) Under subtitle E of the Consumer Financial Protection Act of
2010, by the Bureau of Consumer Financial Protection, in the case of
any financial institution and other covered person or service provider
that is subject to the jurisdiction of the Bureau and any person
subject to this subtitle, but not with respect to the standards under
section 501.

(b) ENFORCEMENT OF SECTION 501.--

(1) IN GENERAL.--Except as provided in paragraph (2),
the agencies and authorities described in subsection (a), other than
the Bureau of Consumer Financial Protection, shall implement the
standards prescribed under section 501(b) in the same manner, to the
extent practicable, as standards prescribed pursuant to
section 39(a) of the Federal
Deposit Insurance Act are implemented pursuant to such section.

(2) EXCEPTION.--The agencies and authorities described
in paragraphs (3), (4), (5), (6), and (7) of subsection (a) shall
implement the standards prescribed under section 501(b) by rule with
respect to the financial institutions and other persons subject to
their respective jurisdictions under subsection (a).

(c) ABSENCE OF STATE ACTION.--If a State insurance
authority fails to adopt regulations to carry out this subtitle, such
State shall not be eligible to override, pursuant to
section 47(g)(2)(B)(iii) of
the Federal Deposit Insurance Act, the insurance customer protection
regulations prescribed by a Federal banking agency under section 47(a)
of such Act.

(d) DEFINITIONS.--The terms used in subsection (a)(1) that
are not defined in this subtitle or otherwise defined in
section 3(s) of the Federal
Deposit Insurance Act shall have the same meaning as given in
section 1(b) of the
International Banking Act of 1978.

[Codified to 15 U.S.C. 6805]

[Source: Section 505 of title V of the Act of November
12, 1999 (Pub. L. No. 106--102; 113 Stat. 1440), effective November 12,
1999; section 1093(4), (5), and (6) of title X of the Act of July 21,
2010 (Pub. L. No. 111--203; 124 Stat. 2096), effective July 21,
2010]

SEC. 507. RELATION TO STATE LAWS.

(a) IN GENERAL.--This subtitle and the amendments made by
this subtitle shall not be construed as superseding, altering, or
affecting any statute, regulation, order, or interpretation in effect
in any State, except to the extent that such statute, regulation,
order, or interpretation is inconsistent with the provisions of this
subtitle, and then only to the extent of the inconsistency.

(b) GREATER PROTECTION UNDER STATE LAW.--For purposes of
this section, a State statute, regulation, order, or interpretation is
not inconsistent with the provisions of this subtitle if the protection
such statute, regulation, order, or interpretation affords any person
is greater than the protection provided under this subtitle and the
amendments made by this subtitle, as determined by the Bureau of
Consumer Financial Protection, after consultation with the agency or
authority with jurisdiction under section 505(a) of either the person
that initiated the complaint or that is the subject of the complaint,
on its own motion or upon the petition of any interested party.

(a) IN GENERAL.--The Secretary of the Treasury, in
conjunction with the Federal functional regulators and the Federal
Trade Commission, shall conduct a study of information sharing
practices among financial institutions and their affiliates. Such study
shall include--

(1) the purposes for the sharing of confidential customer
information with affiliates or with nonaffiliated third parties;

(2) the extent and adequacy of security protections for such
information;

(3) the potential risks for customer privacy of such sharing of
information;

(4) the potential benefits for financial institutions and
affiliates of such sharing of information;

(5) the potential benefits for customers of such sharing of
information;

(8) the feasibility of different approaches, including opt-out
and opt-in, to permit customers to direct that confidential information
not be shared with affiliates and nonaffiliated third parties; and

(9) the feasibility of restricting sharing of information for
specific uses or of permitting customers to direct the uses for which
information may be shared.

(b) CONSULTATION.--The Secretary shall consult with
representatives of State insurance authorities designated by the
National Association of Insurance Commissioners, and also with
financial services industry, consumer organizations and privacy groups,
and other representatives of the general public, in formulating and
conducting the study required by subsection (a).

(c) REPORT.--On or before January 1, 2002, the Secretary
shall submit a report to the Congress containing the findings and
conclusions of the study required under subsection (a), together with
such recommendations for legislative or administrative action as may be
appropriate.

(C) the Board of Directors of the Federal Deposit Insurance
Corporation;

(D) the Director of the Office of Thrift Supervision;

(E) the National Credit Union Administration Board; and

(F) the Securities and Exchange Commission.

(3) FINANCIAL INSTITUTION.--

(A) IN GENERAL.--The term "financial institution"
means any institution the business of which is engaging in financial
activities as described in section
4(k) of the Bank Holding Company Act of 1956.

(B) PERSONS SUBJECT TO CFTC REGULATION.--Notwithstanding
subparagraph (A), the term "financial institution" does not
include any person or entity with respect to any financial activity
that is subject to the jurisdiction of the Commodity Futures Trading
Commission under the Commodity Exchange Act.

(C) FARM CREDIT INSTITUTIONS.--Notwithstanding
subparagraph (A), the term "financial institution" does not
include the Federal Agricultural Mortgage Corporation or any entity
chartered and operating under the Farm Credit Act of 1971.

(D) OTHER SECONDARY MARKET
INSTITUTIONS.--Notwithstanding subparagraph (A), the term
"financial institution" does not include institutions chartered
by Congress specifically to engage in transactions described in section
502(e)(1)(C), as long as such institutions do not sell or transfer
nonpublic personal information to a nonaffiliated third party.

(ii) resulting from any transaction with the consumer or any
service performed for the consumer; or

(iii) otherwise obtained by the financial institution.

(B) Such term does not include publicly available information, as
such term is defined by the regulations prescribed under section 504.

(C) Notwithstanding subparagraph (B), such term--

(i) shall include any list, description, or other grouping of
consumers (and publicly available information pertaining to them) that
is derived using any nonpublic personal information other than publicly
available information; but

(ii) shall not include any list, description, or other grouping
of consumers (and publicly available information pertaining to them)
that is derived without using any nonpublic personal information.

(5) NONAFFILIATED THIRD PARTY.--The term
"nonaffiliated third party" means any entity that is not an
affiliate of, or related by common ownership or affiliated by corporate
control with, the financial institution, but does not include a joint
employee of such institution.

(6) AFFILIATE.--The term "affiliate" means any
company that controls, is controlled by, or is under common control
with another company.

(7) NECESSARY TO EFFECT, ADMINISTER, OR ENFORCE.--The
term "as necessary to effect, administer, or enforce the
transaction" means--

(A) the disclosure is required, or is a usual, appropriate, or
acceptable method, to carry out the transaction or the product or
service business of which the transaction is a part, and record or
service or maintain the consumer's account in the ordinary course of
providing the financial service or financial product, or to administer
or service benefits or claims relating to the transaction or the
product or service business of which it is a part, and includes--

(i) providing the consumer or the consumer's agent or broker
with a confirmation, statement, or other record of the transaction, or
information on the status or value of the financial service or
financial product; and

(ii) the accrual or recognition of incentives or bonuses
associated with the transaction that are provided by the financial
institution or any other party;

(B) the disclosure is required, or is one of the lawful or
appropriate methods, to enforce the rights of the financial institution
or of other persons engaged in carrying out the financial transaction,
or providing the product or service;

(C) the disclosure is required, or is a usual, appropriate, or
acceptable method, for insurance underwriting at the consumer's
request or for reinsurance purposes, or for any of the following
purposes as they relate to a consumer's insurance: Account
administration, reporting, investigating, or preventing fraud or
material misrepresentation, processing premium payments, processing
insurance claims, administering insurance benefits (including
utilization review activities), participating in research projects, or
as otherwise required or specifically permitted by Federal or State
law; or

(D) the disclosure is required, or is a usual, appropriate or
acceptable method, in connection with--

(i) the authorization, settlement, billing, processing, clearing,
transferring, reconciling, or collection of amounts charged, debited,
or otherwise paid using a debit, credit or other payment card, check,
or account number, or by other payment means;

(ii) the transfer of receivables, accounts or interests therein;
or

(iii) the audit of debit, credit or other payment information.

(8) STATE INSURANCE AUTHORITY.--The term "State
insurance authority" means, in the case of any person engaged in
providing insurance, the State insurance authority of the State in
which the person is domiciled.

(9) CONSUMER.--The term "consumer" means an
individual who obtains, from a financial institution, financial
products or services which are to be used primarily for personal,
family, or household purposes, and also means the legal representative
of such an individual.

(10) JOINT AGREEMENT.--The term "joint agreement"
means a formal written contract pursuant to which two or more financial
institutions jointly offer, endorse, or sponsor a financial product or
service, and as may be further defined in the regulations prescribed
under section 504.

(11) CUSTOMER RELATIONSHIP.--The term "time of
establishing a customer relationship" shall be defined by the
regulations prescribed under section 504, and shall, in the case of a
financial institution engaged in extending credit directly to consumers
to finance purchases of goods or services, mean the time of
establishing the credit relationship with the consumer.

(a) PROHIBITION ON OBTAINING CUSTOMER INFORMATION BY FALSE
PRETENSES.--It shall be a violation of this subtitle for any person
to obtain or attempt to obtain, or cause to be disclosed or attempt to
cause to be disclosed to any person, customer information of a
financial institution relating to another person--

(1) by making a false, fictitious, or fraudulent statement or
representation to an officer, employee, or agent of a financial
institution;

(2) by making a false, fictitious, or fraudulent statement or
representation to a customer of a financial institution; or

(3) by providing any document to an officer, employee, or agent
of a financial institution, knowing that the document is forged,
counterfeit, lost, or stolen, was fraudulently obtained, or contains a
false, fictitious, or fraudulent statement or representation.

(b) PROHIBITION ON SOLICITATION OF A PERSOON TO OBTAIN
CUSTOMER INFORMATION FROM FINANCIAL INSTITUTION UNDER FALSE
PRETENSES.--It shall be a violation of this subtitle to request a
person to obtain customer information of a financial institution,
knowing that the person will obtain, or attempt to obtain, the
information from the institution in any manner described in subsection
(a).

(c) NONAPPLICABILITY TO LAW ENFORCEMENT AGENCIES.--No
provision of this section shall be construed so as to prevent any
action by a law enforcement agency, or any officer, employee, or agent
of such agency, to obtain customer information of a financial
institution in connection with the performance of the official duties
of the agency.

(d) NONAPPLICABILITY TO FINANCIAL INSTITUTIONS IN CERTAIN
CASES.--No provision of this section shall be construed so as to
prevent any financial institution, or any officer, employee, or agent
of a financial institution, from obtaining customer information of such
financial institution in the course of--

(1) testing the security procedures or systems of such
institution for maintaining the confidentiality of customer
information;

(2) investigating allegations of misconduct or negligence on the
part of any officer, employee, or agent of the financial institution;
or

(3) recovering customer information of the financial institution
which was obtained or received by another person in any manner
described in subsection (a) or (b).

(e) NONAPPLICABILITY TO INSURANCE INSTITUTIONS FOR
INVESTIGATION OF INSURANCE FRAUD.--No provision of this section
shall be construed so as to prevent any insurance institution, or any
officer, employee, or agency of an insurance institution, from
obtaining information as part of an insurance investigation into
criminal activity, fraud, material misrepresentation, or material
nondisclosure that is authorized for such institution under State law,
regulation, interpretation, or order.

(f) NONAPPLICABILITY TO CERTAIN TYPES OF CUSTOMER INFORMATION
OF FINANCIAL INSTITUTIONS.--No provision of this section shall be
construed so as to prevent any person from obtaining customer
information of a financial institution that otherwise is available as a
public record filed pursuant to the securities laws (as defined in
section 3(a)(47) of the
Securities Exchange Act of 1934).

(g) NONAPPLICABILITY TO COLLECTION OF CHILD SUPPORT
JUDGMENTS.--No provision of this section shall be construed to
prevent any State-licensed private investigator, or any officer,
employee, or agent of such private investigator, from obtaining
customer information of a financial institution, to the extent
reasonably necessary to collect child support from a person adjudged to
have been delinquent in his or her obligations by a Federal
or
State court, and to the extent that
such action by a State-licensed private investigator is not unlawful
under any other Federal or State law or regulation, and has been
authorized by an order or judgment of a court of competent
jurisdiction.

(a) ENFORCEMENT BY FEDERAL TRADE COMMISSION.--Except as
provided in subsection (b), compliance with this subtitle shall be
enforced by the Federal Trade Commission in the same manner and with
the same power and authority as the Commission has under the Fair Debt
Collection Practices Act to enforce compliance with such Act.

(b) ENFORCEMENT BY OTHER AGENCIES IN CERTAIN CASES.--

(1) IN GENERAL.--Compliance with this subtitle shall be
enforced under--

(A) section 8 of the Federal Deposit Insurance Act, in the case
of--

(i) national banks, and Federal branches and Federal agencies of
foreign banks, by the Office of the Comptroller of the Currency;

(ii) member banks of the Federal Reserve System (other than
national banks), branches and agencies of foreign banks (other than
Federal branches, Federal agencies, and insured State branches of
foreign banks), commercial lending companies owned or controlled by
foreign banks, and organizations operating under section 25 or
25A of the Federal Reserve Act, by
the Board;

(iii) banks insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System and national
nonmember banks) and insured State branches of foreign banks, by the
Board of Directors of the Federal Deposit Insurance Corporation; and

(iv) savings associations the deposits of which are insured by
the Federal Deposit Insurance Corporation, by the Director of the
Office of Thrift Supervision; and

(B) the Federal Credit Union Act, by the Administrator of the
National Credit Union Administration with respect to any Federal credit
union.

(2) VIOLATIONS OF THIS SUBTITLE TREATED AS VIOLATIONS OF
OTHER LAWS.--For the purpose of the exercise by any agency referred
to in paragraph (1) of its powers under any Act referred to in that
paragraph, a violation of this subtitle shall be deemed to be a
violation of a requirement imposed under that Act. In addition to its
powers under any provision of law specifically referred to in paragraph
(1), each of the agencies referred to in that paragraph may exercise,
for the purpose of enforcing compliance with this subtitle, any other
authority conferred on such agency by law.

(a) IN GENERAL.--Whoever knowingly and intentionally
violates, or knowingly and intentionally attempts to violate, section
521 shall be fined in accordance with title 18, United States Code, or
imprisoned for not more than 5 years, or both.

(b) ENHANCED PENALTY FOR AGGRAVATED CASES.--Whoever
violates, or attempts to violate section 521 while violating another
law of the United States or as part of a pattern of any illegal
activity involving more than $100,000 in a 12-month period shall be
fined twice the amount provided in subsection (b)(3) or (c)(3) (as the
case may be) of section 3571 of title 18, United States Code,
imprisoned for not more than 10 years, or both.

(a) IN GENERAL.--This subtitle shall not be construed as
superseding, altering, or affecting the statutes, regulations, orders,
or interpretations in effect in any State, except to the extent that
such statutes, regulations, orders, or interpretations are inconsistent
with the provisions of this subtitle, and then only to the extent of
the inconsistency.

(b) GREATER PROTECTION UNDER STATE LAW.--For purposes of
this section, a State statute, regulation, order, or interpretation is
not inconsistent with the provisions of this subtitle if the protection
such statute, regulation, order, or interpretation affords any person
is greater than the protection provided under this subtitle as
determined by the Federal Trade Commission, after consultation with the
agency or authority with jurisdiction under section 522 of either the
person that initiated the complaint or that is the subject of the
complaint, on its own motion or upon the petition of any interested
party.

In furtherance of the objectives of this subtitle, each Federal
banking agency (as defined in section 3(z) of the Federal Deposit
Insurance Act), the National Credit Union Administration, and the
Securities and Exchange Commission or self-regulatory organizations, as
appropriate, shall review regulations and guidelines applicable to
financial institutions under their respective jurisdictions and shall
prescribe such revisions to such regulations and guidelines as may be
necessary to ensure that such financial institutions have policies,
procedures, and controls in place to prevent the unauthorized
disclosure of customer financial information and to deter and detect
activities proscribed under section 521.

(a) REPORT TO THE CONGRESS.--Before the end of the
18-month period beginning on the date of the enactment of this Act, the
Comptroller General, in consultation with the Federal Trade Commission,
Federal banking agencies, the National Credit Union Administration, the
Securities and Exchange Commission, appropriate Federal law enforcement
agencies, and appropriate State insurance regulators, shall submit to
the Congress a report on the following:

(1) The efficacy and adequacy of the remedies provided in this
subtitle in addressing attempts to obtain financial information by
fraudulent means or by false pretenses.

(2) Any recommendations for additional legislative or regulatory
action to address threats to the privacy of financial information
created by attempts to obtain information by fraudulent means or false
pretenses.

(b) ANNUAL REPORT BY ADMINISTERING AGENCIES.--The Federal
Trade Commission and the Attorney General shall submit to Congress an
annual report on number and disposition of all enforcement actions
taken pursuant to this subtitle.

(1) CUSTOMER.--The term "customer" means, with
respect to a financial institution, any person (or authorized
representative of a person) to whom the financial institution provides
a product or service, including that of acting as a fiduciary.

(2) CUSTOMER INFORMATION OF A FINANCIAL
INSTITUTION.--The term "customer information of a financial
institution" means any information maintained by or for a financial
institution which is derived from the relationship between the
financial institution and a customer of the financial institution and
is identified with the customer.

(3) DOCUMENT.--The term "document" means any
information in any form.

(4) FINANCIAL INSTITUTION.--

(A) IN GENERAL.--The term "financial institution"
means any institution engaged in the business of providing financial
services to customers who maintain a credit, deposit, trust, or other
financial account or relationship with the institution.

(B) CERTAIN FINANCIAL INSTITUTIONS SPECIFICALLY
INCLUDED.--The term "financial institution" includes any
depository institution (as defined in
section 19(b)(1)(A) of the
Federal Reserve Act), any broker or dealer, any investment adviser or
investment company, any insurance company, any loan or finance company,
any credit card issuer or operator of a credit card system, and any
consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis (as defined in section 603(p) of the
Consumer Credit Protection Act).

(C) SECURITIES INSTITUTIONS.--For purposes of
subparagraph (B)--

(i) the terms "broker" and "dealer" have the same
meanings as given in section 3 of the Securities Exchange Act of 1934
(15 U.S.C. 78c);

(ii) the term "investment adviser" has the same meaning as
given in section 202(a)(11) of the Investment Advisers Act of 1940
(15 U.S.C. 80b--2(a)); and

(iii) the term "investment company" has the same meaning as
given in section 3 of the Investment Company Act of 1940
(15 U.S.C. 80a--3).

(D) CERTAIN PERSONS AND ENTITIES SPECIFICALLY
EXCLUDED.--The term "financial institution" does not include
any person or entity with respect to any financial activity that is
subject to the jurisdiction of the Commodity Futures Trading Commission
under the Commodity Exchange Act and does not include the Federal
Agricultural Mortgage Corporation or any entity chartered and operating
under the Farm Credit Act of 1971.

(E) FURTHER DEFINITION BY REGULATION.--The Federal Trade
Commission, after consultation with Federal banking agencies and the
Securities and Exchange Commission, may prescribe regulations
clarifying or describing the types of institutions which shall be
treated as financial institutions for purposes of this subtitle.

(a) IN GENERAL.--The Comptroller General of the United
States shall conduct a study of the feasibility of requiring, in
connection with any electronic fund transfer initiated by a consumer
through the use of an automated teller machine--

(1) a notice to be provided to the consumer before the consumer
is irrevocably committed to completing the transaction, which clearly
states the amount of any fee that will be imposed upon the consummation
of the transaction by--

(C) any national, regional, or local network utilized to effect
the transaction; and

(D) any other party involved in the transfer; and

(2) the consumer to elect to consummate the transaction after
receiving the notice described in paragraph (1).

(b) FACTORS TO BE CONSIDERED.--In conducting the study
required under subsection (a) with regard to the notice requirement
described in such subsection, the Comptroller General shall consider
the following factors:

(1) The availability of appropriate technology.

(2) Implementation and operating costs.

(3) The competitive impact any such notice requirement would have
on various sizes and types of institutions, if implemented.

(4) The period of time that would be reasonable for implementing
any such notice requirement.

(5) The extent to which consumers would benefit from any such
notice requirement.

(6) Any other factor the Comptroller General determines to be
appropriate in analyzing the feasibility of imposing any such notice
requirement.

(c) REPORT TO THE CONGRESS.--Before the end of the 6-month
period beginning on the date of the enactment of this Act, the
Comptroller General shall submit a report to the Congress containing--

(1) the findings and conclusions of the Comptroller General in
connection with the study required under subsection (a); and

(2) the recommendation of the Comptroller General with regard to
the question of whether a notice requirement described in subsection
(a) should be implemented and, if so, the manner in which such
requirement should be implemented.

The Board of Governors of the Federal Reserve System shall conduct a
comprehensive study, in consultation with the Chairman and Ranking
Member of the Committee on Banking and Financial Services of the House
of Representatives and the Chairman and Ranking Member of the Committee
on Banking, Housing, and Urban Affairs of the Senate, of the Community
Reinvestment Act of 1977, which shall focus on--

(1) the default rates;

(2) the delinquency rates; and

(3) the profitability;

of loans made in conformity with such Act, and report on the study to
such Committees not later than March 15, 2000. Such report and
supporting data shall also be made available by the Board of Governors
of the Federal Reserve System to the public.

(a) STUDY.--The Secretary of the Treasury, in consultation
with the Federal banking agencies (as defined in
section 3(z) of the Federal
Deposit Insurance Act), shall conduct a study of the extent to which
adequate services are being provided as intended by the Community
Reinvestment Act of 1977, including services in low- and
moderate-income neighborhoods and for persons of modest means, as a
result of the enactment of this Act.

(b) REPORTS.--

(1) IN GENERAL.--The Secretary of the Treasury shall--

(A) before March 15, 2000, submit a baseline report to the
Congress on the study conducted pursuant to subsection (a); and

(B) before the end of the 2-year period beginning on the date of
the enactment of this Act, in consultation with the Federal banking
agencies, submit a final report to the Congress on the study conducted
pursuant to subsection (a).

(2) RECOMMENDATIONS.--The final report submitted under
paragraph (1)(B) shall include such recommendations as the Secretary
determines to be appropriate for administrative and legislative action
with respect to institutions covered under the Community Reinvestment
Act of 1977.

(a) STUDY REQUIRED.--The Federal banking agencies shall
conduct a study of banking regulations regarding the delivery of
financial services, including those regulations that may assume that
there will be person-to-person contact during the course of a financial
services transaction, and report their recommendations on adapting
those existing requirements to online banking and lending.

(b) REPORT REQUIRED.--Before the end of the 2-year period
beginning on the date of the enactment of this Act, the Federal banking
agencies shall submit a report to the Congress on the findings and
conclusions of the agencies with respect to the study required under
subsection (a), together with such recommendations for legislative or
regulatory action as the agencies may determine to be appropriate.